If you have some extra money to save or you want to save for something in particular then it’s worth having a savings account that is in your own name. Firstly you need to decide what you want from an account and how you want to operate it before choosing the account that is right for you.
For instance you could have an internet based account, one operated via a passbook from your local bank's branch or one that is only available through the post. All have their own advantages and disadvantages and it is worth taking a look at all the options.
Another point to consider before choosing your account is how much you want to save and how often. You can normally get the highest interest rates on 'regular savings accounts' where you have to deposit a minimum amount each and every month, however these accounts are restrictive and usually come with many conditions, including how often withdrawals may be made.
If you want instant access to your money, as most people probably do, then there are a number of savings accounts to choose from. Again you are only restricted by the methods you want to use to operate your account and your choice of provider.
The highest interest rates often come with internet based accounts such as the HSBC Online Saver paying 5.75% AER and the ICICI Banks HiSAVE Savings Account which is paying 5.65% AER both of which are easy, instant access internet accounts.
As always it is essential to shop around and to find the best account that suits you by using the comparison websites. The two that I think are worth using are: this is money.co.uk and money supermarket.com
When using these sites always visit the account providers website and read the terms and conditions of the specific accounts you are thinking of opening as there may be restrictons and limitations on them.
Also it is worth noting that if you are not working or are earning less than your tax allowance, currently £5,225 per year, then you may be entitled to tax-free interest on your account. Please see the page relating to tax-free interest by following the link on the right.